OKLAHOMA CITY--(BUSINESS WIRE)--
Devon Energy Corp. (NYSE: DVN) announced today it has entered into an
agreement to sell its aggregate ownership interests in EnLink Midstream
Partners, LP (NYSE: ENLK) and EnLink Midstream, LLC (NYSE: ENLC) to an
affiliate of Global Infrastructure Partners (GIP), a leading global,
independent infrastructure fund manager for $3.125 billion. In
conjunction with this sale agreement, Devon’s board of directors has
increased the size of the company’s share-repurchase authorization to $4
billion.

Consolidated G&A and interest costs to decline by approximately $300
million annually

No incremental corporate cash taxes resulting from transaction

“The sale of our EnLink interests represents a significant step forward
in achieving our 2020 Vision to further simplify our asset portfolio and
return excess cash to shareholders,” said Dave Hager, president and CEO.
“This highly accretive transaction provides a strategic exit from EnLink
at a value of 12 times cash flow, a substantial premium to Devon’s
current trading multiple. The EnLink proceeds, combined with proceeds
from the non-core E&P assets already sold and those currently being
marketed, will exceed our $5 billion divestiture target.

“Consistent with our disciplined multi-year plan, we will return
proceeds from this transaction to our shareholders,” Hager said. “Our
board has authorized an increase in our share-repurchase program to $4
billion, which represents approximately 20 percent of our outstanding
shares.

“Looking ahead, we will continue to build upon our strong relationship
with EnLink and GIP,” Hager said. “EnLink remains a preferred partner
for us in the midstream space, and we will continue to pursue mutually
beneficial ways to grow our respective businesses across North America’s
most prolific growth basins.”

Share-Repurchase Program Increased to $4 Billion

In conjunction with the EnLink transaction, Devon’s board of directors
authorized a $3 billion increase to the company’s previously announced
$1 billion share-repurchase program, bringing the total repurchase
program to $4 billion. The $3 billion increase in authorization extends
through Dec. 31, 2019 and is conditioned upon the closing of the EnLink
transaction, which is expected to close in July 2018. As of April 30,
2018, Devon had completed $204 million of repurchases under the program
totaling 6.2 million shares.

All purchases will be made in accordance with applicable laws from time
to time in open-market or private transactions, depending on market
conditions, and may be discontinued at any time. At the current share
price, this program covers approximately 20 percent of the company’s
outstanding common stock.

Pro Forma Financials and Revised Upstream Financial Outlook

Upon closing of this transaction, the financial results of EnLink
Midstream will no longer be consolidated with Devon’s upstream business.
Also, EnLink’s financial results up to this transaction will be
presented as discontinued operations in Devon’s consolidated financial
statements. Devon will provide pro forma financial statements within
four business days of the transaction closing. Additionally, updated
detailed forward-looking guidance for financial statement line items
impacted by this transaction in 2018 are provided later in this release.
A few noteworthy highlights of this revised guidance include
consolidated G&A and interest savings of approximately $300 million and
a 40-percent decrease in consolidated debt.

EnLink Transaction Details

Devon’s ownership interests in EnLink Midstream includes 115 million
units in the general partner (NYSE: ENLC) and 95 million units in the
master limited partnership (NYSE: ENLK). The company’s interests in
EnLink generated $265 million of cash distributions over the past year,
valuing the transaction at approximately 12 times cash flow. The
transaction is subject to customary terms and conditions and is expected
to close in July 2018.

As part of this transaction, Devon will extend its fixed-fee gathering
and processing contracts with respect to the Bridgeport and Cana plants
with EnLink through 2029. The company’s minimum volume commitments for
these agreements will expire at the end of 2018.

Devon Energy is a leading independent energy company engaged in finding
and producing oil and natural gas. Based in Oklahoma City and included
in the S&P 500, Devon operates in several of the most prolific oil and
natural gas plays in the U.S. and Canada with an emphasis on achieving
strong returns and capital-efficient cash flow growth. For more
information, please visit www.devonenergy.com.

Forward-Looking Statements

This press release contains forward-looking statements within the
meaning of the federal securities laws. Such statements are subject to a
number of assumptions, risks and uncertainties, many of which are beyond
the control of the company. These risks include, but are not limited to:
the delay or failure to consummate the transaction due to unsatisfied
closing conditions or otherwise; the amount of proceeds received, and
the ultimate use of those proceeds; the negotiation and completion of
the Cana and Bridgeport plants contract extensions; changes in commodity
prices, market conditions or other circumstances that could negatively
impact the company’s ability to complete the stock repurchase program;
and the other risks identified in the Company’s Annual Report on Form
10-K and its other filings with the Securities and Exchange Commission
(SEC). Investors are cautioned that any such statements are not
guarantees of future performance and that actual results or developments
may differ materially from those projected in the forward-looking
statements. The forward-looking statements in this press release are
made as of the date hereof, and the company does not undertake any
obligation to update the forward-looking statements as a result of new
information, future events or otherwise.

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